Consumer Math

Personal finance is (a)   behavior and ​ (b)   head knowledge.

• 80%
• 20
• 100%
• 20%
• 10%

Match the following

• Interest

• A debt specified by a "note," which specifies the principal amount, interest rate and date of repayment (example: house mortgage or car note)

• Loan

• A person or organization that buys/uses goods or services

• Credit

• The granting of a loan and the creation of a debt

• Debt

• An obligation of repayment owed by one party (debtor/borrower) to a second party (creditor/lender)

• Consumer

• A fee paid by a borrower to the lender for borrowing money

Match the following

• Personal Finance

• Any form of deferred payment

• Financial Literacy

• The knowledge and skillset necessary to be an informed consumer and manage finances effectively

• Irresponsible

• Spending money you do not by using credit cards

• Economy

• The decisions and actions of an individual or family regarding their money, including spending, saving, budgeting, etc.

• Credit

• A system by which goods and service are produced and distributed

In Dave Ramsey's Consumer Math Course, what are the "beginning steps for establishing and maintaining financial peace" called?

• The 80/20 rule

• The Five Foundations

• Financial Literacy

• Getting Out of Debt

What is the FIRST foundation of establishing and maintaining financial peace?

• Create an

  Emergency Fund

• Get out of debt

• build wealth and give

• pay cash for your car

Label The Five Foundations

steps for establishing and maintaining financial peace (in the proper order)

e

f

g

d

h

Save a $500 EMERGENCY Fund

Get out of DEBT

Pay CASH for your car

Use CREDIT if you don't have cash to pay

Pay cash for COLLEGE

Build WEALTH and Give

Spend now and SAVE later

Loan money to FAMILY members only

Using credit has always been the American way to purchase products.

• True

• False

What never solves problems but only delays one problem while causing others

• paying with cash

• giving to others

• debt

• saving for a rainy day

At least how much money should a high school student have in an emergency fund?

• $100

• $300

• $500

• $5,000

You should keep your emergency funds in the same account with your expense funds.

• True

• False